MR. Chaudhar V.M. Workshop on The Future of

Transcript:MR. Chaudhar V.M. Workshop on The Future of:
MR. Chaudhar V.M. Workshop on The Future of Banking organized by HMA & ISB (October 30, 2004) Vepa Kamesam Former Deputy Governor, RBI Currently Chairman, IDRBT/BRBNML Technology and Banking The Quintessence Nature of Banking harmonizes closely with Technology – Pervasive Branch Network Global Operations Complex Credit Calculations Innovative Risk Management Mass Transaction & Items Processing Many Benefits of Technology Increased operational efficiency, profitability & productivity Superior customer service Multi-channel, real-time transaction processing Better cross-selling ability Improved management and accountability Efficient NPA and risk management Minimal transaction costs Improved financial analyses capabilities Focus aspects of Commercial Banking now are: Core Banking (CBS) ATMs Card Management Any Branch Banking Document Management Risk Management Resource Management MIS & Intranet CRM Corporate Network Electronic Banking POS Terminals and Cash dispenser BANK’S BUSINESS BANK’S BUSINESS RAISING DEPOSITS LOANS & MISC. SERVICES Financial Technology Infrastructure Data Center to host servers for: CBS ATM/Financial Switch Internet Banking DW/DM/CRM/MIS etc. Back-office Application E-mail Servers, Internet Server, Enterprise-wide Network & Networking Equipment Security Systems Systems at Branches/RO/ZO/CO Depts. Supporting Systems Disaster Recovery Site & Business Continuity Technology – A Differentiator Technology is indeed a differentiator not only in terms of competitive advantage, but also in terms of administrative and back-end processes…. But…due to rapid technology deployment in Indian banking sector, the “haves” and “have-nots” gap is all set to narrow quickly. Technology Differentiation Fades Gradually…. How Long a Differentiator? Then….can technology be enough of a differentiator? Any new technology or technology-enabled process can act as a differentiator or a competitive edge for some level of time. After that time, the technology still has to be adopted as a “necessity” and as a cost of doing business Thanks to shortening technology life cycles, it would be short sighted to assume that technology would be a long term differentiator… Elements of Technology as a Differentiator Scalability & Flexibility Efficient utilisation, mgmt Process enabling Utility to customer Support Skills For Long-Term Differentiation Issues with Customers Not only employees, there are problems for customers too when a new technology arrives… The major challenges – Comfort levels Security and trust issues Convenience factor Getting rid of myths Migration from existing to new systems Changing the habits Electronic Banking ATM Head Office Branch Banking Branch 1 Branch 2 Branch 3 Branch 4 Branch 5 Branch 6 Branch n Technology Acquisition Inappropriate technology purchases can be the root of all problems… The Bank management has to: